Question

How have U.S. pharmaceutical companies been impacted over the last month?

Answer 1

Due to ongoing trade war with China, a 25% tariff will be imposed on raw drug ingredients, insulin, epinephrine and vaccines . About 80% of the ingredients needed to make drugs consumed by patients in the United States are imported from China as well as India.

The tariffs cover a wide range of goods concerning the pharmaceutical industry as well as steel, aluminium and other products.

The proposed tariffs may lead to increased costs of manufacturing  and thus higher prescription drug prices for patients in the U.S as drug makers pass along their increased costs due to the tariffs.